This law gives the commissioner the authority to create rules and regulations necessary to enforce the provisions of this division. It also allows them to make specific decisions and requirements to ensure compliance.

If you're running a check-selling business, you have to use your real name to operate unless you've followed specific rules in another part of the Business and Professions Code.

When a business, called a licensee, sells things like checks or money orders to pay bills on behalf of someone else, the money they get from those sales must be kept in trust. This means it legally belongs to the person who paid and should be separate from the business’s own money. If the business mixes this money with its own, all its assets become a trust in favor of the person who paid until the money is properly separated and put in a special trust account. These funds can’t be seized by creditors unless it’s related to the payment service, and they must always cover the business’s liabilities from these transactions.

The business must allow inspections of these trust accounts if requested by a state commissioner. Even if the license to operate is suspended or ends, the business must cover all outstanding obligations by adding enough money to the trust account to cover all the checks and bills they haven't yet paid.

This law explains how agents must handle money they receive on behalf of their licensee. Agents can use these funds only for making change or cashing checks. The funds must be separated and sent or deposited into a specific trust account by the third business day. However, if the agent operates more than two locations and deals with large sums, they need to deposit these funds by the next business day.

If an agent holds less than $1,000 in a week, they might be allowed to deposit funds every 10 days instead of three, if authorized. If an agent fails to transfer or deposit the funds correctly, the licensee must terminate the agent and notify authorities within five days. That agent can't become an agent for any licensee again unless specified.

This law requires any money received by a financial licensee to be kept separate from their own funds in a trust account. The funds must be deposited into the trust account by the end of the next business day after they are received. These funds can only be used to pay bills or for transactions such as checks, drafts, or money orders, unless another rule applies as mentioned in a different section.

This law specifies how licensed businesses can use certain funds before and after they're separated and deposited. Before separation and deposit, the funds can only be used for making change or cashing checks, but only up to the amount covered by a bond filed according to Section 12206. After the funds are separated and deposited, they can still be used for cashing checks, but again only up to the amount guaranteed by a bond filed with specific conditions outlined in Sections 12207 to 12213.

If a business has a license to sell checks, drafts, or money orders, it can open additional branches or agencies as long as it takes full responsibility for the actions of anyone conducting transactions on its behalf at these locations. Each branch or agency must have a sign that clearly indicates it is part of the main licensed business. The main business is accountable for any transactions conducted by people at these branches, reflecting that responsibility cannot be shifted away from the licensee.

If you run a business that issues checks, drafts, or money orders in California, and you set up a new mobile unit, branch, or agency location, you must inform the state commissioner in writing within 10 days. You need to provide details like the name, address, and state registration number of the new location or mobile unit. Also, if you close any of these locations, you should notify the commissioner within five days, including a reason for the closure and relevant registration details.

If a licensed business in California sells a check, draft, or money order, it must issue these payments from an account that the business holds at a bank approved to operate in California.

This law requires that before an authorized person can sell checks, drafts, or money orders, their signature must be on file with the bank that will pay these items. Alternatively, the licensee must give prior written permission to the bank and the commissioner, allowing the bank to honor these transactions. However, this does not apply if the licensee has notified the bank to stop payment on certain items.

A business that is licensed must immediately stop using a particular agency if the commissioner orders it and if it's proven that: (a) the agency won't let its financial records be checked, (b) there's a financial shortage related to selling checks, (c) the agency doesn't handle the money from selling checks or similar items as instructed, or (d) the agency breaks any rules from this chapter. Once terminated, the agency can't be restarted or started by anyone else without the commissioner's written permission. If there's a disagreement with the termination, the licensee or agent can ask for a hearing, which must happen within 10 days. If the commissioner decides the issues are only minor technicalities that don't impact the agent's duties, or if the issues didn't actually occur, they can cancel the termination order.

This law states that agents of a licensed business are not allowed to issue checks or similar financial documents from the business's trust account unless they have already received the full amount in cash or a verified check, draft, or money order from a third party.

If you have a business license and want to move your business to a new location or change where you operate, you need to inform the commissioner in writing about the change.

If you have a license under this division, you need to keep organized books and records that follow good accounting practices. This helps the commissioner check if you're following the rules. You must keep these records for at least four years after the last entry of a transaction. Keep them updated and at your main office so the commissioner can inspect them during regular hours.

However, you don't need to record every single fee for each transaction. Just make sure you have a record of the total charges during any accounting period.

This section outlines requirements for licensees, except special proraters, to submit audited financial statements to the commissioner annually, within 105 days after their fiscal year ends. If requested by the commissioner, licensees must provide financial statements for the previous 12 months. Licensees who surrender or have their licenses revoked must submit end-of-license audits. These statements must be reviewed by an independent accountant and follow generally accepted accounting principles.

Additional special reports may be required, and submission timelines can be extended for good reason. The commissioner has the right to reject statements that don't meet standards and can require unaudited statements at any time. The commissioner also develops rules regarding the form and content of these reports.

This law allows the commissioner to investigate businesses at any time to check if they are breaking the rules of this division. The commissioner can look at the books, accounts, records, and files of any licensee, agent, or anyone they suspect is involved in these business activities.

If you're a licensee or person examined under this financial law, you must pay for the cost of any examination conducted by the state's commissioner. The commissioner has the right to take legal action to recover these costs if not paid. To figure out the cost, the commissioner might use the average hourly cost for examiners for the year. Note, only licensees or those proven to fall under this law through an official or court hearing are responsible for these costs.

This section allows the commissioner to call witnesses and question them under oath if their testimony is needed for any investigation or examination being conducted.

This law allows the commissioner to start and pursue legal actions to stop violations related to this division. They can also take action to enforce penalties if someone breaks the rules or doesn't follow the commissioner's orders.

This law states that if a financial licensee is found to be financially unstable or conducting business unsafely, the commissioner can immediately stop the licensee from accessing and using its funds. The commissioner sends this order by registered mail to both the licensee and anyone holding their funds. The order stays in effect unless a hearing is requested and not held within 15 days, the commissioner changes the order, the licensee goes into bankruptcy, or a court appoints a receiver to take over the business.

If a financial licensee's capital is weakened, if they're operating unsafely, they've stopped paying trust obligations, won't allow inspections, refuse examination under oath, or ignore the commissioner's orders, the commissioner can take over their business until issues are resolved or the business is fully closed. With the commissioner's agreement, the licensee may resume business under certain conditions.

If the commissioner takes control of a licensee's assets and business, they can ask the court to appoint a receiver to handle the liquidation of the business. During this period, the commissioner has the same powers over the licensee as they do with banks, and the licensee has similar rights to hearings and reviews like banks do. A receiver, once appointed, holds the same authority as the commissioner when dealing with banks.

If someone with a license commits an act related to their professional activity and is disciplined for it by California, another state, a federal agency, or another country, the California commissioner can discipline them too. Having a certified record of what happened in those other jurisdictions is enough proof for California to act on.

Additionally, the commissioner can still use specific laws to discipline someone if they were already disciplined elsewhere, for related activities.

This law requires businesses that are licensed to provide financial services to post their fee schedules clearly where customers can see them. They cannot charge more than the fees they've listed.

Additionally, these businesses must display a notice informing customers that checks or money orders issued by them are not insured by any government or private entity. This notice must be clear and understandable, printed in both English and the language primarily used by the business in its communications. It should be visible to everyone in the building, and the responsibility for posting this notice falls on the agents in agent-run locations.

This law states that if you are licensed to sell checks, you cannot sell checks that can be cashed or used by anyone, like checks made out to 'bearer,' 'cash,' or the buyer themselves. However, you can sell a check without a payee's name as long as the check is $150 or less.

This law says that anyone with a license cannot make or allow any false or misleading statements in their advertising. They also can't leave out important information or mention being supervised by the State of California. If they violate this, the commissioner can order them to stop.

If you are licensed to sell checks, drafts, or money orders, and you want someone to act as your agent in this business, your agreement must be in writing. You cannot pay your agent any compensation or incentives that are not listed in the written agreement. If you break this rule, the commissioner has the authority to order you to stop violating the rule.

This law section makes it clear that a business agent cannot examine, inspect, or audit a client's books and records if those records are in the agent's possession unless the client gives explicit permission.

This law sets limits on the fees that a prorater can charge for their services when distributing payments to a debtor's creditors. The total charge cannot exceed 12% for the first $3,000, 11% for the next $2,000, and 10% for any remaining payments, except for recurring obligations. Recurring obligations include current payments like rent, utilities, and mortgages.

Additionally, an origination fee up to $50 is allowed if certain conditions are met, a $4 fee can be charged per disbursement for recurring mortgages or rent, and a $1 fee for other recurring payments. If a debtor remains under contract and does not cancel within 12 months, any origination fee must be refunded. Moreover, at least 70% of received funds must go to creditors each month.

This law says that a debtor cannot be charged a cancellation fee or termination penalty. In other words, if someone owes money, they can't be hit with extra charges if they decide to cancel or end an agreement.

In California, a prorater—a person who helps manage debt payments—cannot charge any fees unless most of the creditors (at least 51%) involved agree to this arrangement. This agreement can either be through their consent or by accepting a payment distribution.

This law requires a debt management company, called a prorater, to inform all the creditors listed in the debt management contract that the debtor is using their services within five days after the start of the agreement. The notification must include the proposed monthly payment that will be sent to each creditor. Additionally, the contract must clearly list all the debts to be managed, along with each creditor's name and the total amount of all debts.

This law says if a debt repayment company (prorater) charges more than allowed, unless by honest mistake, the contract with the client is canceled, and all fees paid must be returned to the client.

This law states that a prorater, which is someone who helps manage or negotiate debts, is not allowed to buy any debtor's debts from a creditor. This is to ensure that proraters remain unbiased and focused on helping the debtor rather than profiting from the debtor's financial obligations.

This law prohibits proraters, who are individuals or companies that manage debt repayment for others, from having debtors sign documents that have blank spaces. They also cannot accept negotiable instruments or take notes, wage assignments, or any type of security to cover their fees. Furthermore, proraters are not allowed to obtain confessions of judgment or powers of attorney from debtors. Lastly, proraters cannot ask debtors to waive any obligations of the prorater as part of the contract or alongside it.

This section outlines what must be included in a contract between a person managing debts (a prorater) and someone who owes money (a debtor). It requires that the contract lists all debts, includes terms that reflect what the debtor can actually pay, and details the fees charged by the prorater. It must also state how many payments will be made and the total amount of these payments, along with the names and addresses of both parties. Additionally, it may include other necessary disclosures for the debtor's protection as determined by a regulatory commissioner.

If you're working with a prorater (a person who helps you manage your debts by distributing payments to creditors), they must give you a signed copy of any agreement right after you sign it. Also, the contract isn't valid until you pay the prorater to pass along to your creditors.

This law requires that if a financial manager, known as a prorater, doesn't receive payments by check or money order, they must give the person a receipt within five days of getting the payment.

Every six months, a prorater must provide the debtor with a detailed report. This report should include how much money was received from the debtor, how much was paid to each creditor, what each creditor has agreed to accept as full payment, any charges deducted, and any money held in reserve. Additionally, if the debtor requests this in writing, the prorater has seven days to provide the account report.

This law states that a prorater, which is someone involved in managing or organizing how debts are paid, is not allowed to lend money or give credit to others.

This law states that a prorater, which is a person or business involved in managing debt payments for others, is prohibited from giving or receiving any form of payment or reward in exchange for client referrals. They also cannot accept compensation from anyone other than the debtor related to their prorating activities.

This law states that a prorater cannot ask or force a debtor to buy insurance.

If someone is a special prorater, they cannot advertise themselves as a general prorater or say they are qualified to do what a general prorater does unless they actually have a valid and unrevoked license to be a general prorater.

This law section makes it clear that businesses involved in financial activities like debt proration and check selling cannot practice law. They can't prepare or advise on legal documents, give legal advice, or perform any legal services. Additionally, they must not claim they can give legal advice, assume authority for legal tasks, or impersonate an attorney in any communication or documentation.

This law says that a collection agency cannot operate in the same location as a prorating organization unless that prorating organization is exempt under specific rules. Additionally, a collection agency cannot receive a prorater’s license.

This law makes it illegal for a prorater to share a debtor's list of creditors with anyone for the purpose of soliciting business. If they do, they could lose their license.

This law gives the commissioner the power to create rules about the form and wording of advertisements used by proraters, who are companies that distribute or manage money for others. If a prorater's advertising doesn't follow these rules, it can lose its license.

This law requires that each prorater corporation must have staff with at least five years of experience in consumer credit or debt collection. It also mandates that these qualified individuals be present at each business location whenever it is open.

This law makes it illegal for anyone to intentionally change, destroy, hide, or falsify records or objects to hinder the enforcement of financial rules. It also prohibits making false statements to the commissioner during licensing or investigations to affect regulatory processes.